The following business loan documentation checklist is required along with their Business Loan application:
- PAN Card – PAN Card is essential For a Company or Firm or any Individual
- A copy of any of the following documents is required as identity proof:
- Aadhaar Card
- Passport
- Voter’s ID Card
- PAN Card
- Driving License
- A copy of any of the following documents is required as address proof:
- Aadhaar Card
- Passport
- Voter’s ID Card
- Driving License
- Bank statement of the previous 6 months is required
- Latest ITR along with computation of income, Balance Sheet, and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
- Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
- Other Mandatory Documents such as [Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)]
As the Indian economy prospered post-COVID-19, Micro, Small & Medium Enterprises abbreviated as MSMEs are looking forward to expanding their operations and recovering lost ground. Despite that, most of the MSMEs face various hurdles when it comes to securing funding for their businesses. Although there are numerous banks and non-banking financial companies abbreviated as NBFCs which offer business loans, the rejection rates for these loans remain significantly high.
Very often, the reasons for loan rejection are because to a lack of understanding of the application process, incomplete or inaccurate documentation as well and low credit scores.
Furthermore, it is crucial to know the documents mentioned for business loans and must have them ready before applying. By making a business loan documents checklist, we can substantially ignore general mistakes in loan applications and avoid the chances of business loan rejection.
Key highlights to be noted before applying
- Getting a business loan can be a brilliant way to take their business to the next level. Still, the loan application process needs careful and strategic planning and documentation to avoid business loan rejection.
- Six essential documents required to avail of a business loan in Bangalore, including a Business plan, Financial and Bank statements, Tax returns, Business registration documents, Collateral documents, and KYC documents are required to increase the chances of getting the business loan approved.
- It is vital to make sure that all the documents are correct and updated before submitting them to the lender.
- To have a good credit score, adequate collateral, and a steady income while increasing the chances of loan approval.
How to Submit Business Loan Documents?
Knowing what documents are required for a business loan in Bangalore helps in loan requests as it is a vital step in the loan application process. To ensure a smooth-flowing and hassle-free submission, follow these mentioned steps:
Organizing the Documents
Collect all the necessary documents mentioned by the lender. Sort them out and systematically arrange them to avoid any confusion during the process of submission.
Ensure to Make Copies
Create photocopies or scan the original documents required for a Business Loan to have multiple sets of each of the mentioned documents. This ensures that you have backup copies in case any documents are misplaced or lost.
Verifying the Requirements
Ensure to double-check the lender’s specific requirements regarding various document formats, sizes, and any supplementary Business Loan documents checklist that might be requested. Make sure all documents are updated and meet their criteria.
Submit Online or Offline
Always determine the submission method preferred by the lender. Most of the lenders may offer online portals or email submissions, while others may require physical copies to be submitted at a branch office.
Preparing a Cover Letter
Ensure to include a cover letter summarising the documents and any supplementary information or clarifications one wishes to offer.
Reviewing before Submission
Thoroughly review all the documents to ensure accuracy and completeness. Ensure to cross-verify the checklist offered by the lender to ensure you haven’t missed anything.
Timely Submission
Submitting the documents within the specified timeframe to avoid any kind of delay in processing the loan application.
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